One of the accurate BTC price metrics that indicate overbought or oversold is now suggesting that it is in the oversold territory. The lead developer of this signal, Philip Swift, recently disclosed via Twitter that his advanced NFT signal is bullish about the leading cryptocurrency.
The Criteria
The signal uses market cap and asset volume to determine when BTC price is in the oversold or overbought region. When BTC declined to $56K late last month, swift predicted a bounce was imminent. The signal continues dipping according to its spot price following the December 3 downtrend of the general crypto market.
A side benefit is the recurrence of ‘oversold’ indications from the NVT Signal, a feat that has happened just six times over the last seven years. Swift opined that “despite the current fear pervading the crypto market with several indicators indicating near bottoms, I remain bullish.”
NVT Signal – BTC Oversold. Source: Philip Swift
“This NVT signal compares an asset’s price with its on-chain transactions to determine whether BTC is oversold or overbought. Each time this indicator indicates that BTC is in the oversold region, BTC embarks on a strong bullish run not long afterward,” he further disclosed. However, the strength of this bounce may already be weak as BTC dipped despite gaining 6.5% in the last 24 hours to trade at $51.5K as displayed on Bitstamp exchange during the morning session.
Enter At Mid-40K Price Levels To Avoid Getting Trapped – Analyst
As of this writing, the $51K price has established a focus despite analysts indicating a continued downtrend in general market price. Famous crypto analyst, Pentoshi, advised traders only to enter the BTC trade at the mid-40K range. He predicts that this will happen in the next couple of days or weeks. Otherwise, they may be trapped.
As previously analyzed on Cointelegraph, there are several reasons why BTC’s strength doesn’t get affected by its spot price movement. The general BTC accumulations, holding, and high hash rate is responsible for BTC strength. Even smallholders have continued to accumulate more BTC in the last seven days. However, exchange flow data indicates that whales are “hedging their bets.”
BTC Unlikely To Trade At Over $100K This Year Again – Bitwise CIO
While many crypto analysts and enthusiasts had predicted that BTC would trade at over $100K by year-end at the start of the year, many of them are no longer sure. One of those in doubt is Matt Hougan, BitWise’s CIO. Hougan revealed in a recent interview that “it is doubtful that BTC price would be $100K by this year-end despite the unpredictability of the crypto market. However, hitting $100K is an achievable target for the new year.”
Hougan’s optimism about BTC hitting $100K was primarily due to the institutional investment in the leading cryptocurrency, which spiked this year. Hougan further forecasted that top altcoins (such as ETH, MATIC, and SOL) would also experience a significant boost in use cases and prices as more investors’ broadened knowledge about the crypto market make them seek good BTC alternatives.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
